JP Morgan Upgrades Rating On Franchise Company Choice Hotels

‎CanadianBusiness.com:

Choice Hotels International Inc., which franchises Comfort Inn, Clarion and other hotels, was upgraded by J.P. Morgan on Wednesday given its recent trading price.

THE OPINION: J.P. Morgan analyst Joseph Greff upgraded his rating of Choice to “Neutral” from “Underweight” as the stock is trading near his year-end price target of $31.

Overall, Choice Hotels has a “durable and attractive business model,” Greff said, as it focuses on franchising hotels with limited to no capital investment of its own. It also has a secure dividend and strong balance sheet, he noted. However, it may have a slower recovery than its peers, given its limited growth plans, position in lower-priced hotels and smaller international presence. As a result, earnings estimates were unchanged.